trades. >> buy gold in yen terms. >> adding to wellpoint. >> ibm. >> that does it for us. more fast at 5:00 tonight and watch "power lunch" which starts right now. thank you, scott. welcome to "power lunch. i'm sue herrera. my partner tyler joined me down here on the nyse. we're off of our highs but the market's starting to climb back up, up about 184 points on the dow jones industrial average at 12,859. the intraday dow as you can see, off the best levels of the day. the momentum is building more. it started off with a spike up 255 points on comments of the ecb president saying to do whatever is necessary to keep the eurozone intact. >> our mandate, the ecb is ready to do whatever it takes to preserve the euro.

and believe me, it will be enough. >> believe me, it will be enough, he said. but then the market fell because then came reports of european traders and here on this side of the atlantic that he said effectively all this, lots of times before. let's take a look and see where the s&p stands right now. up 18 points. a little more than 1%. the nasdaq is higher by 30. that's almost exactly 1%. gold is up $5.40 at $1,613. let's kick things off with bob pisani. >> you said it all before. the futures moved 18 points. >> you know what though? >> i come in from coffee, boom, 18 points. >> don't you think also it coordinates with the fact people expect action by the fed next week, as well? >> yes. >> there's talk of coordination. yes, he's said this before. he seemed to be a little bit more emphatic this time around. >> he struck out in to new

ground here. he's said, listen. the inability of sovereign governments to access the bond market is now a concern of ours and anyone who interferes with that we're going to try to act. he's trying to expand the mandate a little bit. may get pushback from the germans. three to one advancing to declining stocks. take a lock at the sectors. when i see leadership telecom, consumer staples, utility will r the market leaders enzoent you think with the dollar weak -- no. they're lagging behind here. that's what i mean about the quality of market. concerned of earnings. i want to comment quickly on the housing. pending home sales, new an existing home sales, disappointing. why hitting new highs? meritage homes, 48% increase in orders? pulte 32% increase in orders. capturing a bigger and bigger share of the market.

even fair to great, as long as they keep capturing the biggest share of the market, the stocks up. you almost have two markets. publicly traded builders and the rest of the housing market. you have to almost differentiate talking between the two. >> how's the volume? >> fair. i thought we'd do a billion down here. right now, only 400 million. the volume drops off. >> see you later. thank you so much. rick santelli has breaking news. today's bond auction, $29 billion in 7-year notes. he was not happy with the denand yesterday's issue. are you happy today, ricky? >> a little happier but let's go through the internals. 29 billion, 7 years. odd man on the curve. 7-year around long enough to get more conventional sort to speak. the yield, 0.954. a whisker of the wbi side of the market and we'll call it, you know, a very small tail.

below the 2.83 auction average. on the indirects better than the 40% 10-auction average. it means that deal earls took about 46.5% of the auction. you know, this is below average pretty much on everything. we're going to have to give it a c-minus. didn't like demand. didn't like the bid to cover. priced a little wide but better than yesterday's five but the short maturities on tuesday the strongest of the three with 99 billion. tyler, it's all yours. >> all right. rick, c-minus today. i guess a "d" yesterday and rick was not happy yesterday, as all, sue, as you point out. let's find seema mody uptown. >> today we are happy. the nasdaq interestingly enough is in the green even though apple shares still in negative territory. then of course, zynga, missing street estimates.

the stock down about 40% but we still got a couple of winners to make sure that we highlight. look at akamai technologies. beating on the top and bottom lines. strong cloud continuing demand. the stock moving sharply higher. a big winner here at the nasdaq and speaking to traders who are involved in tech, that's one of the big outperformers and surprised the street. whole foods end katding that the high end customer is spending and another one to watch out for. we have starbucks on tap tonight and of course earnings after the bell an one to watch here at the nasdaq. back the you. >> seema, thanks a million. kenny pulcari is here. do you agree with bob that mr. draghi expanded the mandate? >> he did but he threw out that the doors are wide open. nothing specific but that we have a lot of money basically. we stand there. not running out of money and

what does that really mean? right? the market took off. i think you saw a lot of short covering today. people have been negative. i think that just cause add lot of people to run for cover really quickly which i think is part of what you see in this rally. >> that's what i was going to ask you. is this, up 194 points on the dow, does it have staying power if the basis is short covering? >> you know, i think today i think we kind of stay up here. people are now looking forward like you said to the fed announcement. everyone's expecting that uncle benny -- he's going to say something. listen. the housing numbers are horrendous today and a conversation. >> the jobless numbers were better. >> the information is confusing at best, right? and so therefore, the ball's in ben bernanke's court and i think the market's going to hold its own right here and probably close up triple digits. i think 280 points? probably not. >> okay. even molding on to this, what's the recipe for tonight? what are we making?

>> steak recipe. it's grilled rib eye and the marinade. it's delicious with a big salad. a bottle of red wine, perfect. >> maybe bubbly if the market holding. see you later. ty, a grilled rib eye. >> good to see. how do you play a day like this? tyler vernon is with us today at the new york stock exchange. so what should i do here? >> well, i think we have seen the highs of the day. biltmore capital, we sold a lot of covered calls. we thought that was the high of the day and we think it is the high of the day. coming in to gdp numbers tomorrow, could be disappointment. every time we have seen the market rally on european news it tends to fall back because of a lack of commitment and action behind that. there is a lot of talk incessantly out of europe and less action and less sense of commitment here. when you hear draghi say something like today, do you react or go, wait a minute, i have heard this all before? >> yeah. if you're long, it's a great

opportunity to take profits. a great opportunity to sell some covered calls to bring in some extra income but again, we have seen it before. again, with the news coming out of the corporate area, news down and u.p.s. 1% gdp at the end of the year and only more medicine of bernanke. is that something to get excited about, that's what's going to drive the market? >> yeah. thanks very much. back with you throughout the program. let's move on to the facebook fallout. the first results as a public company released after the bell today and everybody believe me everybody's watching. the stock is still a loser down 22% from its ipo price. but that's not as bad as zynga's been. kayla tausche has more but first julia boorstin in los angeles with the look at the company's numbers later today. julia? >> reporter: there's huge attention on facebook's results, especially after zynga's big earnings miss. wall street projects revenue

$1.146 billion and earnings of 12 cents per share but some other numbers may be equally important including facebook's advertising growth and whether it continues to slow. facebook says about a click through rates and pricing will also be key. what everyone wants to know is how facebook is handling mobile. how mu how many users access through mobile. and look for an update on active use earls. of course, tyler, analysts are very eager for guidance. does facebook expect to return to accelerating revenue growth? recent product launches won't have much of an impact this quarter, but facebook should explain what boost they'll provide down the line. back over to you. >> thank you very much. now checking in with kayla who's got some more on facebook's other issues. kayla? >> reporter: facebook faces three giant hurdles on today's

earnings. the first is a giant charge facing due to accounting for restricted stock compensation for employees tied to the ipo and facebook said based on first quarter fair value of 2973 a share, $965 million. facebook takes the average price of the three-day window to price that but a billion dollar charge swallows up the revenues for facebook to post. this is something that killed zynga in the first public quarter because invest to recalls felt blindsided by it but the zynga proxy is also worrisome. lost 20% on charge that day and 40% in the last day after saying engagement with games is down. now, engagement was one piece of positive spin when facebook's q1 revenue and margins weren't stellar and zynga last night with a nasty outlook and facebook's outlook suspect over the moon investors whose shares unlocked in august could throw

in the towel. 268 million shares eligible to be sold on august 15th. we'll see if that brings further downward pressure on the stock. sue? >> kayla, thank you very much. facebook as you know, as kayla outlined, reported today. it's well below the offering price. where will it stand one year after the listing? you can vote at finance.yahoo.com. the results coming up a little later. now to brian shact man with a market flash for us. >> cabela's hitting an all-time high today, up about 15% on the daily. year to date, up 76%. great earnings. talked about extremely strong sales in power sports products and firearms and ammunition and strangely enough alarming in the backdrop of aurora but the earnings extremely strong. back to you. >> brian, thank you very much. coming up next, investigating pere gunshot grine

financial. how did regulators miss it snaul we have a top official of the cftc next. on an upside day, here are five big movers. walt disney is up 2.5%. better than 2% gain in merck, as well. five etfs really on the move. double or triple bullish. we have a 2% gain in the proshares ultra qqq. we're back in a moment. [ male announcer ] drive a car filled with as much advanced technology

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welcome back to power lunch. brian shactman here. look at kimberly-clark and colgate-palmolive. they said emerging markets are still showing growth. we're seeing different companies having different responses here. unilever earlier. both outperforming the broader market. consumer goods, still selling it out there, sue. >> there you go. and we're all still buying it. thank you very much. the trustee handling peri gunshot grine's financials are hired a forensic accountant. we'll talk live with the commissioner in a few minutes but first scott cohen live in cedar falls, iowa. scott? >> reporter: sue, cedar falls is still reeling from all this.

not just the firm that was shut down but the italian restaurant that the ceo russell wasendorf opened. his suicide attempt unsuccessful is behind bars due back in court tomorrow. in his suicide note, he claims he created the mess over 20 years all by himself. using a combination of photoshop, excel, scanners and both laser and ink jet printers i was able to make very convincing forgeries of nearly every document of the bank. really? a couple of employees that worked in the i.t. department say russell wasendorf was no computer was and the league regulators told us yesterday that the claim is suspicious. >> the sheer volume of forged documents that were produced as a part of this scheme is staggering and had to occur on a daily basis. and so, i think there's a legitimate cause for question as to whether more than one person was involved.

>> reporter: former pfg broker paul cavanaugh says he wonders about the claim, as well. >> i just can't understand when he would have had a chance to be going down in the basement and photo shopping things and changing these records. you know, i just don't know where he was doing that. we didn't see anything like that in the office. >> reporter: prorls certainly aren't takes wasendorf at the word. the investigation is on going. the bankruptcy trustee hired forensic accountants in part in order to determine if anybody else was involved. now, what about wasendorf's son? he was granted power of attorney from his father just days before the company's collapse. well, his attorney tells us that wasendorf jr. is cooperating with authorities but we also have learned that russell wasendorf jr. put his house up for sale just this week.

the attorney says that junior's father is public enemy number one here and he doesn't want to stick around. asked what message that sends to the community. the attorney say that is he has to look out for his family and doesn't care what message it sends. guys? >> scott, thank you very much. we expect to be joined by scott omalia in a moment. is he ready to go? >> yes. >> wonderful. terrific. scott is a commissioner with the cftc and a key player in today's emergency meetings on how to protect people's money and bringing in knowledge and a lot of reporting on peregrine. welcome to "power lunch." what did you want do get throughout? >> well, the important thing that we need to if kus on the technology solution to put an end to the absolute end of the nasty fraud perpetrated by peregrine and the other frauds in this industry.

technology is a solution to make sure to verify accounts on a daily basis, a regular basis and make sure that everybody's resources are safe. their customer money is safe. >> i guess one learns from all different frauds and it's very difficult in many circumstances to detect a fraud. look at madoff and enron and the ones that have gone on for many, many years. but a lot of the people i have talked to have said that this one ought to have been a lot simpler to catch. he was just forging documents and doing phony statements. why wasn't it caught sooner by the regular lays such as at your institution? >> we are looking in to that. when it started, how it was perpetrated but we have to put an end to that process. now more documents faxed in. no more e-mails or post office boxes but electronically. we can see through independent verification with the banks, the

cleari clearinghouses and the documents themselves. what are the technology solutions? we have great enthusiasm for putting forward a technology solution. everybody in this room thinks it can be doable and should be done immediately and that's the exact right answer we're looking for. >> all right. let's bring in rick santelli. rick, i know you have been following this story from the beginning. go ahead. >> well, sir, first of all, not only commissioner but the chairman of a technical advisory committee. isn't that correct? >> yes, sir. >> okay. and how long have you had both of those roles at the cftc? >> i've been on the commission just about -- just short of three years and when i arrived at the commission i understood that we received a lot of our surveillance material, data about market surveillance and information by facsimile and that's ridiculous. >> it is ridiculous. but let me stop you right there. listen. we are in agreement. and that statement you read, i think it's a great statement. the problem is i think it should have been made about ten years ago.

my issue is, after madoff, after the issues regarding mf global, to think that you're going to look at us an i'm not saying you in particular and tell us this one escaped us because of p.o. boxes and forgeries of photoshop i think i am appalled and if this came out of jamie dimon's mouth investigating or other regulators they would have thrown him and called for the resignation. why have we not seen heads roll at the cftc? it's not rocket science! all this technology you've talked about has been around for a very long time. >> that's right. it's unfortunate that it hasn't been the standard. >> but unfortunate isn't good enough. >> that has to change. >> how can you at the cftc look at people watching down here lost money in those both firms and now their stock in major banks in jeopardy because the

libor issue which also was highly aware of by the cftc and the treasury years ago swept under the rug? how can you write more rules and place more regulators when you were duped by photoshop with a guy that doesn't know how to use a computer well? there is no excuse, zero, none. >> mr. santelli, i think you will agree with us when you prosecuted and the settlement of barclays and busted -- >> they paid a half a billion dollars! what's the cftc, where's their pound of flesh? >> we are exacting our pound of flesh. we're continuing to look at this and putting technology first and foremost and none of these things can happen. using libor is not enough. we need to focus on a transaction-based question. >> one final question and i know it's not your fault. one final question. >> go ahead. >> when was the last time you've

done a refi or did any kind of business transaction at your local bank? >> recently, actually, for a better rate, thank you. >> when they asked you, you know, for your paperwork for the bank, did they trust what you said or the fact to give them a piece of paper or request your account number, banking address and the appropriate information? >> i just think that to do due diligence. >> i think we have a technical issue. we'll leave it there. thank you all very much. we'll thank you by remote and we hope you'll join us again very soon. zynga, cat, altira. say that three times fast. you don't have to. we'll go through the calls and analyze the analyst when we come back on a special edition of "power lunch." and so too is the summer event. now get an incredible offer on the powerful, efficient c250 sport sedan

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three words, dad -- e-trade financial consultants. so i can just go talk to 'em? just walk right in and talk to 'em. dude, those guys are pros. they'll hook you up with a solid plan. they'll -- wa-- wa-- wait a minute. bobby? bobby! what are you doing, man? i'm speed dating! [ male announcer ] get investing advice for your family at e-trade. welcome back. take a look at steve madden shoe. up sharply here and reversing the losses in the last two months. there's soft seasonal footwear sales. the nervous is overblown. stock up 15%. back to you. >> thank you very much. we have managed to correct the technical issues that we have and want to welcome back for one final word mr. omalia. thank you, again, for bearing with us for the technical

issues. i wanted to give you a chance to respond and get the final word really to rick's question and also my question to you would be, how do you restore confidence in the investor community in the futures markets, in management of money, in the way that the whole system works? it seems to be so damaged at this point. >> right. you're absolutely right. and i understand rick's passion on this issue. catching bad guys should be first and foremost in our mission. and as the old saying goes, an ounce of prevention is worth a pound of cure. we need to be in the business of using technology as prevention and cannot happen. not allowing anybody to perpetrate these kind of frauds. mf global was different than peregrine. we need to prevent all fraud going forward. >> we wish you the best of luck in that. go ahead. >> so that's why we have the technology advisory meeting. we called it immediately to get to the bottom of this. how's the industry going to pay

for and correct this and we're going to oversee all of the implementation to make sure they live up to their word on this. >> do you have a timeline has to see concrete changes put in place? >> well, immediate is the reaction i have. but today's discussion will be focusing on how soon we can get it. we're halfway through the meeting today and continuing this discussion going forward and when it can be done and we are going to have a follow-up meeting to check this in the fall and check the status of the reforms are. >> all right. we hope you to rejoin us at this point and give us an update. thanks very much. >> you bet. thank you. >> tyler, over the you. >> a special "analyze this" from the floor of new york stock exchange. a pair of tylers here. we have to start with zynga. goldman sachs downgrading it and not the only one. a little bit late but let's talk about it. to neutral to buy slashing the price target from 4 bucks to 13. to 13.

from 4. >> huge. >> saying the shares, quote, are unlikely to see significant upside until the company begins to return to prior levels of profitability and growth. the shares today down over 38%. after that earnings miss. how could you disagree with this downgrade? >> i think you have to be -- definitely agree with the call. you see a ceo sold hundreds of millions of dollars of his own stock before this news. it doesn't give you a lot of confidence in the management of the company and what they think about going forward. we agree. we think the business model yet to be proven and google makes more sense. totally agree with the call. >> get out of the way of that one. wells fargo downgrading caterpillar. noting macro economic uncertainty making us take a wait and see attitude. the shares are down 20%. that would be caterpillar but a nice earnings report yesterday, tyler. >> great earnings report. i don't know how the analyst is saying this. we think it's a screaming buy.

there's amazing things going on in china. building more of the energy infrastructure here in the u.s. i don't know how you can come out with that. we think it's a great buy at this point. >> you disagree with that call. okay. fine. ubs downgrading altria to neutral from buy. still makes sense but we see little upside of the stock from the current levels over the year. the shares up 35% but there you see it today at 35.74 and i think their call on this was with a $35 price target. >> yeah. with bernanke, we agree with this completely. bernanke's decreasing rates with the 10-year at 1.4. a crowded trade is in trade. everybody looking for yield. pe jumped up. i wouldn't be buying it at these prices. >> thank you very much. gold prices closing right now. sharon epperson is tracking the action. sharon? >> the bid of the gold market earlier this morning fizzled a

bit. gold prices closed above the 1,600 level for the second straight session and near a three-week high here for the price of the precious metal. of course, a lot of comments on cnbc and on a lot of the trading desks and among the traders about draghi's comments and gave enough information to sustain the bull stance that we saw in the marketplace that was so overly bullish this morning. and it really didn't seem to be quite enough so that's why we're seeing a bit of a fizzle here. add to that the data that's weak and why we're not higher traders say for gold prices. we have seen this happen in all of the commodities or many of the metals markets in this session as they have come off of the highs and silver right now is flat on the day. closing flat on the session and copper is well off of the highs, as well. even the oil market off of the high. seems to have faded a bit from the euphoria of this morning but there's still a bit of a bid in

this market. back to you. >> sharon, thank you very much. trading action here, we're up above 200 points to the plus side right now so we really haven't seen too much of a pullback at this point. >> good news is holding up at 3 to 1 advancing to declining stocks. what i don't like is the mix. that's the composition. that's what i pay attention to. you can see why do on a day when the global markets should be expanding do you not have materials and exports a market leader? sue, the materials and industrials are kind of lagging the rest of the market. those are the ones you want to see and look at the big material names. the dollar is down big today. the euro, that trade held up today. but the big material names are flat to even slightly on the downside. if you look, maybe alcoa is up. many of the other big names in the materials sector are actually to the downside today. that's a little bit worrisome.

if there's a big confidence in the market to expand on draghi's comments you would see it in the key international stocks. we are not really seeing this. >> the fed next week, what's the expectation? >> expectation is they're going to -- there's a split here. 50% of the market believes they're going to act. >> always is, isn't there? >> other 50% said, well, why can't they do it in the few ek wo weeks before the elections occur? >> you need to be apolitical. we'll see. thank you. all right. let geese to the nasdaq. seema mody once again following the big movers there. >> hi there. the nasdaq composite, up on the day and down on the week and that's primarily due to a couple of negative earnings reports from the likes of apple getting back in to positive territory. netflix which continues to move lower down better than 5% and zynga, of course, touching on throughout the day, down better than 40% on the disapointing

earnings report. look at a couple of winners. whole foods really outperforming here at the nasdaq. strong earnings report. the chief executive on the conference call saying that the company is thriving in an economic environment that is proving to be difficult for other retailers. stock up better than 9%. a couple of bright spots in the bio tech space to bring your attention to. take a look at celgene. this morning, accelerated the quarter and definitely something that analysts are excited about. amarin. fish oil pill. kind of an interesting story. tyler, over to you. >> thank you very much. let's drill deeper on mario draghi's comment on doing whatever it takes to save the e euro to steve liesman. he said the same things before. why did today's comment resonate so much? >> you know, i think it was the

context. i think it was all of the things he said all in one. yes, some of them before and maybe not altogether. i'll get to that in a second. they come after an ecb yesterday suggested that maybe they could give that european central -- european rescue fund a banking license to leverage up. it showed less opposition to that so that in context with draghi saying whatever it takes suggests that maybe the ecb is reducing the resistance to the all-out war that effectively waged by the federal reserve and ecb reluctant. now to do what it takes suggests there's more things to pull out of its, you know, bag of tricks and reluctant to use, tyler, over the course of this crisis over there. they have done some bold things but he's done them and then stopped and not said, you know what? this is open ended. that's the big comment of people observing today saying it sounds

like the beginning of an open-ended battle here by the ecb. >> what could the bag of tricks include? what would ecb intervention look like? >> there's a lot of different forms to take but most of the money now i think is betting on using the smp and when they buy additional sovereign bonds. when draghi says that we have a reason to act because all the different sovereign countries have different raits, you saw there earlier i think, spanish 10-year near 6% and that kind of difference to come in, how would you solve that problem? go in and buy bonds. that would be a way to do it. also, again, leveraging up the rescue fund another possibility. take paper to the ecb to finance it. another way. there's other things that the federal reserve had a bag of tricks that the ecb could begin to use. >> stuff we didn't dream of. >> i can't believe the things i'm saying sometimes, tyler. >> absolutely. thank you very much.

sue? all right. thank you. up next this afternoon, this key numbers on housing that will have you asking what happened to the so-called recovery? that's straight ahead. before the break, a look at home builders having a stellar day today with lennar you have better than 3%. dow jones industrial average up 200 points on the trading session. with the fidelity stock screener, you can try strategies from independent experts and see what criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. to experience the lexus performance line... including the gs

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dow back above 200 points in the green but ford still in the red. it sold off about 25%. seems that just about everybody is selling on the europe fears in terms of earnings, revenue light. goldman sachs says the second half they should have a reacceleration, tyler, in the margins, if europe at least stabilizes and buy it here. back to you. >> all right. thank you very much. secretary geithner making comments on libor. eamon javers is live with details in washington. >> reporter: secretary tear geithner on capitol hill for testimony largely focused on the role in libor and made the same defenses of yesterday but i wanted to play a snippet of he said to you because it sort of

raises this question of whether geithner thinks it's appropriate at all for industry self regulatory industries to be involved in this. >> we have to look at other parts of the financial system which -- where the markets rely on private organizations composed of private firms, like the british bankers association that have some quasi regulatory or self regulatory role. >> reporter: obviously, tyler, a lot of american self regulatory organizations involved. i asked what geithner was getting at there and they just said this is something to take a broad look at. tyler? >> very interesting. now to housing, gentlemen. another reason to pause before you say recovery. pending home sales slipping in u june but still up versus the same period a year ago.

dia diana olick is live for us in washington. >> reporter: you're right. despite the improvements from a year ago, take a look. the number of signed contracts to buy existing homes fell 1.4% in june month to month from a downwardly revised may figure. this is the national association of realtors for existing home sales. the realtors blame it on a lack of foreclose juries and they're imploring the banks saying any bank-owned properties should be released expeditiously to help meet market demand and may get the wish because a new report of realty track shows in the first half of this year foreclosure activity did rise compared to second half of last year and seeing gains of over 20% in foreclosures in cities such as philadelphia, chicago, new york,

tampa and baltimore. but in the west, not so much. and that's where most of the investor activity is. sue? >> diana, thanks. facebook shares trading below the ipo price of 38 bucks. social network set to report the first quarterly results as a public company today after the closing bell. of course, we'll have it for you. where do you think facebook's stock will be one year after the listing? give you the yahoo! finance poll results after a quick break. we are up 200 points on the dow jones industrial average. 255 to the plus side the high of the day and the market's holding up well with confirmation of the transports and utilities. we're back in a moment.

coming up at the top of this hour, former zynga bull with the green light on "street signs" after the ipo joins us for an

mea culpa on the sinking stock. front lines of strong earnings there and the real story on jcpenney. we were all over the big spike yesterday. it was touched off by a tweet. see the power of tweeter. back to "power lunch." >> we'll be watching, mandy. thanks very much. when facebook is set to release the first earnings report as a public company, any new listing on the nasdaq is going to be watched very closely by investors and in today's case that new listing would be e2open which made the public debut today under the ticker eopn and ringing the opening bell today at the nasdaq is ceo there. the stock priced at $15 a share is trading lower. first on cnbc, the ceo mark woodward from nasdaq and welcome to "power lunch."

how are you? >> good. how are you? >> exciting day i'm sure for you. did it go smoothly? of course, we all remember facebook and it didn't go smoothly. did it go smoothly for you? >> we're happy with how it's gone. we spent two weeks on the road meeting with potential investors. we built a very strong book and the people that own the stock are in for three to five years and we are an accelerating growth story and i think the investors looking at where we'll be in the future and not necessarily trading today. in the last couple of weeks, you know, we have seen the vx up 26%. some comps traded down. especially with a smaller ipo, not uncommon to see pressure on the first day but i think the investors that know the story are going to buy the stock and see it go up from here. >> let's talk a little bit of recent history of ipos in the technology arena. you're a cloud-based software company opposed to social networking or gaming or whatever but the recent history has not been terribly favorable and an

awful lot of those companies a year hence trading way off the opening price. you don't think it's a danger in your case? >> i really don't. i know the fundamentals of the company and seeing the accelerating growth in the company. some companies you have seen and done well and traded down are companies that have been really hyper growth and the only way the growth goes from there is down. you know? we're confident in our growth going forward accelerating and i think that's going to show in the stock price going forward. >> what is your growth rate, eps growth rate? >> so analyst model this is year have us at 20%. next year 25. i think axccelerate beyond that. >> thank you very much. >> on a consistent basis. >> okay. thank you very much. congratulations on your debut today. >> thank you, tyler. >> open for business under eopn, sue. >> indeed it is, ty. new enterprise associates raising $2.6 billion for the

latest funds. one of the biggest in history. and it took it less than two months to do it. nea manager director peter baris live in washington for us. congratulations. >> thank you very much. happy to be here. >> i bet. you know, in this environment, to be able to raise that amount of cash is quite extraordinary, certainly, but it also i think speaks to the fact that investors are looking for the next big thing. they're looking for opportunity outside of markets like here down at the nyse traditionally quite volatile. do you agree? >> absolutely. i think one of the experiences in the fund raising is limited partner and perspective limited partners told us they thought that the asset class is a good way for alpha in the portfolios. >> where do you see opportunity? i mean, we are looking at a day of facebook to report after the bell and the stock is down from its ipo price. zynga's getting killed today in

the trading session. where do you see opportunity in a network that is showing, you know, some ragged edges today? >> well, we have the benefit of not having to look at day-to-day price fluctuations on the public markets. we're obviously focused on building companies for the long term, and in terms of sectors, we are a very diversified firm. we participate in health care, technology, in clean tech, as well. we see opportunities across all of the sectors. in fact, we have seen a recent uptick in health care sector that's been pretty lackluster in recent past. we have had four ipos recently and one very large m and a transaction and in fact one of the companies went public this morning so the health care sector's very big on the technology side. we're particularly excited about everything that's happening in mobile and how mobile is driving not only consumer behavior but enterprise behavior and we also

see opportunity in the education space. there's a transformation going on there and we've funded four different companies in the education space in the last 12 months. >> if i could turn you back to health care, is there a particular slice of health care where you see more opportunity than, say, perhaps others? >> well, our focus is on bio pharma and medical devices so inhibitix is that company that did a transaction last year to bristol-myers. sold over $2 billion. and we've had specialty companies in the oncology space and companies in the diabetes space, et cetera. so it's across a broad range, quite frankly. but the focus is bio pharma and medical devices. >> best of luck with you. we appreciate your time. >> thank you. coming up, more on super mario draghi and the markets when we come back on "power lunch."

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let's talk markets. kenny, i would much rather talk about the steak and a nice salad. >> delicious. >> a nice -- >> the grill outside. some nice music.

>> will i feel nourished at the end of the day? >> more than nourished and today, like i said, i think the market stays high like it is. i don't think there's reason to back off and no reason for it to move much higher than it is. you have short covering and i think you had -- so the market got to this place and churning and taking in the news of today. >> the question is if you're the individual investor, tyler, do you put money in today ahead of a big fed meeting next week and the uncertainty with that? >> there's a lot of uncertainty. fast money coming in. could be out tomorrow. ahead of the numbers tomorrow, it is a real nervous and speculative market. any time in the past that we have seen markets rally because of when's coming out of europe, generally there's a failure to act and we have seen pullbacks. i would be adding money here. >> if you're a short term trader type, take advantage. but if you're a long term, no reason to chase this. in time, i think the market will be weaker again and come to you. >> not a lot of long-term investors.

>> you can tell by the volume. not a lot of voluntarily youm. >> confirmation of the transports. >> you would expect if the long-term investors are getting in, see an explosion in volume because people are moving money in. you are not seeing this. >> see other areas exploding. >> thanks, kenny. i'll be over afterwards for that steak. tyler, cook up something good, too, baby. see ya. >> we talk about the cell phone plays out there. well coming up, the ceo of a company that makes stuff for cell phone towers. we are back in two. l the way to. in the middle of a department store. some parents might have scolded him. ♪ jonathan's parents gave him... gymnastics lessons. ♪ it's amazing how far you can go with a little help along the way. ♪ td ameritrade. proud sponsor of the 2012 u.s. olympic team.

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all right. here's the results of the yahoo! finance poll. 10% of you said that the facebook stock would be above the $38 ipo price. 5% said, the $38 ipo price, at the $38 ipo price and 85% said it will be below the $38 ipo price one year after -- >> are you a contrarian? will you go with the crowd or against the grain and buy that stock? >> i don't know. >> fun being down here. the market up about 195 points. >> we have to do this more often. >> a few stocks like